Silver drops in futures trade on weak global cues

Silver prices dropped by Rs 621 to Rs 2.62 lakh per kilogram in futures trade on Thursday amid weak global trends and concerns that elevated crude oil rates could keep interest rates higher for longer by central banks. On Multi Commodity Exchange, the white metal for July delivery depreciated by Rs 621, or 0.24 per cent, to Rs 2,62,337 per kg in a business turnover of 11,830 lots. Analysts said the decline in silver prices came as renewed tensions in West Asia kept energy markets on edge, sustaining concerns that oil rates could feed into global inflation and delay any monetary policy easing by major global central banks.

“Silver prices are trading on a weak footing on Thursday, pressured by rising expectations that central banks may be compelled to tighten monetary policy in response to an energy-driven inflation shock linked to the conflict in West Asia,” Renisha Chainani, Head of Research at Augmont, said.